The author and developer of the Gambit system is Walter T. Downs, who proposed a description of this strategy in June 2010. Subsequently, according to legends, Walter T. Downs did not stop working on improving and refining his own idea. Thus, the sliding average in the original version was replaced by a combination of Bollinger bands, according to the author, to obtain more precision signals. So, what results did the deserved trader achieve? Consider a more or less averaged interpretation of this trading idea, which can now be found easily on the Internet.
Long-term trading systems are known to be much simpler and more reliable than short-term weekly trading system. However, many beginning Forex traders do not prefer to trade on day and week schedules because they believe that such trading requires good knowledge in fundamental analysis. In fact, everything is different. Trading on day schedules is accompanied by a lot of advantages that are most relevant for beginner traders:
There are a huge number of strategies for trading on daily schedules, but under this article we will consider a trading system called "Gambit." This forex trading strategy is very popular with medium-term traders, who speak positively about it and advise in various forums and pubs. The name of the strategy went from a similar term in chess, which means sacrificing the small to get more. The creator of the trading system Walter Downs played chess so he called his strategy in such an analogy. In order to get a profit in the strategy Gambit needs to donate a little time and excerpt, and the reward for such a victim can be quite impressive - from several hundred to several thousand points profit.
Features of strategy Gambit
The creator of the trading system described his invention as a strategy with high signal accuracy, which allows to significantly reduce risks in trade. And indeed, Gambit 's forex trading strategy, though it does not give a large number of signals, is each accompanied by a high profitability factor and a small level of loss stops, given the work on the day schedules.
For trade the trading terminal Metatrader 4 and only one indicator of Bollinger band is used. That is why Gambit 's strategy is considered the simplest and most suitable for emerging currency traders. Trading can be carried out at any time of the day depending on the convenience of the trader, and all the main currency pairs with high liquidity are suitable as instruments.
Since entry points are not so often, not more than one per week, it is possible to use trade on several trading instruments at once, and to analyze even more - almost all available currency pairs of majors. This will increase the number of deals and allow faster development of the necessary trading experience.
Strategy signals Gambit
The signals for the Gambit weekly trading system are accompanied by a number of conditions to be provided before entering the transaction. The conditions concern both the signal Japanese candle and the myforex indicator.
Small explanation. For example, a candle is formed with long shadows at the bottom and slightly shorter than the shadow at the top, and the body of the candle is not more than 50 points, which is located closer to the top. In such a case, the condition is considered to be met and the closing level is located above the upper half of the plug range.
After all signals are generated, if you enter the direction of the general trend line, you can open the long position. This position must be in the rollback area, so the entry point is formed but the boundary of the Bollinger lane. The further the entry point from the midline, the weaker the Gambit system signal.
The protective stop order is installed 5-10 points below the minimum of the signal candle. In the case of a downtrend, consider the reverse signals and enter with similar parameters. The stop loss will then be set above the maximum of the signal plug. The feet in Gambit 's strategy differ in their small size, so the losses in the strategy are highly conservative. If by the rules of the system and taking into account the entry point of the transaction, the loss stop level is too high, you should cancel the entry and skip the position. As a rule, stop loss should not exceed 160 points.
There is no profile in the Gambit system because the exit point is based on the Bollinger Lane indicator. When after the rollback, the price reached the next boundary of the Bollinger indicator, it is necessary to close the position with profit.